Residents in the North East are half as likely to struggle with their finances than the UK average according to research from Chiltern Debt Management.
Just one in 16, the lowest in the UK, said their finances were a struggle, against one in six in the South and one in nine throughout the UK.
However, the research also discovered that one in 11 people are only making the minimum payments each month to their credit and store card balances, which will prolong the time spent in debt.
Nevertheless, people in the North East were more likely to say their household finances were comfortable than anywhere else in the country.
Almost eight out of ten people said that their finances were in a comfortable state, compared to six in ten in Lancashire, seven in ten in Yorkshire and a UK average of seven in ten.
Chiltern’s Joanne Gill says: “On the surface it would appear that residents in the North East are dealing with their finances well, but one in 11 people are still only making minimum payments to credit and store cards, which means the position could quickly change.
“People who say they are comfortable with their finances but who are only paying the minimum required amount, could find that the debt they owe is not reducing and with rising interest rates it could prove costly.
“It’s much better to pay off as much as possible on credit and store cards each month, as these generally have the highest interest rates, and seek help or advice if you find that you’re having difficulties.”
Key Findings
• 6.2 per cent (one in 16) of people living in the North East said their household finances were a struggle, compared to 15.4 per cent (one in six) in the South and 11 per cent (one in nine) across UK.
• 79.5 per cent (eight in 10) of North East residents said their finances were comfortable, against 64.5 per cent (six in 10) in Lancashire and 69.7 per cent (one in seven) throughout the UK.
• 9.4 per cent (one in 11) of North East residents said that they are only making minimum payments to their credit and store cards each month against 9.8 per cent (one in 10) UK average.
Chiltern Debt Management provides an informal solution to help people manage their debts. This involves working with the customer to produce a budget detailing income and necessary expenditure, like housing, food, clothes, bills and transport.
The money left over, once living costs have been accounted for, is known as the disposable income. This is shared proportionately between the customer’s creditors until the client becomes debt free or a change in circumstances means they are able to resume contractual payments to the creditors.
Research Findings
Household finances by gender
| Gender | Struggling | Over-stretched | Paying in full | Minimum payments |
| Female | 14.2% | 2.0% | 36.9% | 11.6% |
| Male | 7.7% | 2.5% | 38.8% | 7.8% |
| Average | 10.9% | 2.2% | 37.8% | 9.8% |
Household finances by age
| Age | Struggling | Over-stretched | Paying in full | Minimum payments |
| 16 – 24 | 11.2% | 0% | 23% | 7.9% |
| 25 – 34 | 10.6% | 1.7% | 37% | 11.5% |
| 35 – 44 | 11.4% | 3.1% | 43.8% | 10.7% |
| 45 – 54 | 14.8% | 4.9% | 42.3% | 13.7% |
| 55 – 64 | 12.5% | 2.2% | 44.8% | 9.8% |
| 65+ | 6.9% | 1.4% | 36.1% | 5.4% |
| Average | 11% | 2.2% | 37.8% | 9.8% |
Household finances by region
| Region | Struggling | Overstretched | Paying in full | Minimum payments |
| East Anglia | 11.2% | 0.7% | 48.4% | 12.1% |
| Lancashire | 14.6% | 4.1% | 28.9% | 14.8% |
| London | 13.2% | 2.0% | 45.8% | 7.7% |
| Midlands | 8.1% | 1.1% | 35.6% | 10.2% |
| North East | 6.2% | 0.8% | 43.6% | 9.4% |
| Scotland | 8.1% | 2.0% | 22.1% | 10.1% |
| Southern | 15.4% | 1.2% | 42.7% | 10.6% |
| Wales | 9.7% | 3.9% | 36.2% | 6.9% |
| Yorkshire | 6.5% | 2.5% | 39.6% | 5.2% |
| Average | 11% | 2.2% | 37.8% | 9.8% |